The Nigerian Senate on Tuesday granted approval to President Bola Tinubu’s request to secure over $21 billion in external loans for the 2025–2026 fiscal period, endorsing a critical financing framework for the implementation of the 2025 Appropriation Act.
The borrowing plan, as approved, includes $21.19 billion in direct foreign loans, €4 billion, ¥15 billion, and a $65 million grant. Additionally, the federal government will raise approximately ₦757 billion through domestic bonds and may generate up to $2 billion via a foreign currency-denominated instrument in the local market.
The approval followed the presentation and adoption of a report by Senator Aliyu Wamako, Chairman of the Senate Committee on Local and Foreign Debt. Wamako explained that although the proposal was initially submitted to the National Assembly on May 27, its consideration faced delays due to the legislative recess and incomplete documentation from the Debt Management Office (DMO).
According to the Senate, the borrowing is essential to close funding gaps, support key infrastructure projects, and ensure full implementation of the national budget.
The decision underscores the Tinubu administration’s reliance on blended financing to drive development goals amid fiscal constraints. However, the Senate urged the executive to ensure transparent utilisation and effective monitoring of the borrowed funds to safeguard public interest.
